Samhi Hotels Ltd Management Discussions

<dhhead>Management Discussion and Analysis</dhhead>

GLOBAL ECONOMY

The global economy entered CY 2025 amid a mix of ongoing
challenges and emerging opportunities, while growth has
moderated compared to CY 2024. As per the April World
Economic Outlook (WEO) by the International Monetary
Fund (IMF), global GDP growth is now projected at 2.8%. This
marks a downward revision from the 3.6% forecast made
in January. This revision stems primarily from escalating
trade tensions, led by sweeping US tariffs and retaliatory
responses by major trade partners.

Recent global developments have led to a complex operating
environment, marked by rising tariff barriers, currency
volatility, and uneven capital flows. These factors have had a
broad-based impact on economic activity. According to the
IMF, global growth in CY 2025 could have reached 3.2% in
the absence of new tariff measures. For CY 2026, the IMF
projects a modest recovery with global growth estimated at
3.0%, though the outlook remains subject to downside risks.

Growth in advanced economies is expected to reach 1.4% in
CY 2025. The US is projected to grow at 1.8%, while the Euro
area may manage just 0.8%. In contrast, emerging market
and developing economies (EMDEs) are projected to soften
to 3.7% in CY 2025, with a mild rebound to 3.9% in CY 2026.
Economies hit hardest by the trade measures, like China, are
seeing substantial downgrades.

While growth moderates, global headline inflation is set to
ease. It is forecast at 4.3% in CY 2025, dipping further to
3.6% in CY 2026. These estimates reflect higher inflation
projections for advanced economies and minor downward
adjustments for emerging and developing markets, largely
influenced by the inflationary impact of tariffs and ongoing
supply-side pressures. Financial markets have responded
with a decline in the Dollar index, widespread equity sell-offs,
and a fall in bond yields and crude oil prices.

(Source: IMF World Economic Outlook - April 2025)

OUTLOOK

Despite current headwinds, the global economy offers a
cautiously optimistic medium-term outlook. While CY 2025
is marked by trade-related disruptions and policy uncertainty,
the foundations for a gradual recovery are beginning to take
shape. If corrective measures continue, global GDP could
touch 3.0% in CY 2026, suggesting a shift towards stability.

Key indicators such as the easing of inflationary pressures,
softening commodity prices, and the endurance of services
and consumption in emerging markets point towards
improving fundamentals. Structural reforms across major
economies, coupled with efforts to normalise monetary and
fiscal policies, are expected to create steadier investment
environments.

Looking ahead, the global economy is poised to navigate this
period of adjustment and emerge stronger, with new drivers
of growth rooted in innovation, sustainability, and inclusive
development.

(Source: IMF World Economic Outlook - April 2025)

INDIAN ECONOMY

India is set to retain its position as the fastest-growing
major economy, reaffirming its rising influence in the global
economic order. According to the IMFs April 2025 WEO,
the Indian economy is expected to grow by 6.5% in 2025.
This contrasts sharply with the global projections of 2.8%
for 2025 and 3.0% for 2026, highlighting Indias continued
strength amid a subdued international climate.

Indias GDP Growth Rate (in %)

FY 2024	FY 2025	FY 2026
6.5	6.2	P1 OJ

Note: For India, data and forecasts are presented on a fiscal
year basis, with FY 2025 (beginning April 2024) shown in the
2024 column. Indias growth projections are 6.5% for 2025
and 6.2% for 2026 on a calendar year basis.

(Source: httDs://www.imf.org/en/Publications/WEQ/Issues/2025/04/
22/world-economic-outlook-aoril-2025)

Indias growth in FY 2025 is being driven by continued
infrastructure development, increased activity in commercial
real estate including office space, and a rebound in the
aviation sector. These sectors are providing a strong
foundation for broader economic momentum.

Private consumption also remains a key contributor,
supported by sustained government spending and a
recovery in rural demand following a healthy Rabi harvest.
In urban areas, consumption trends remain stable, aided by
employment gains in services and a gradual, though uneven,
recovery in manufacturing.

The Union Budget 2025-26 reiterated the governments
focus on fiscal consolidation and infrastructure expansion.
It earmarked 11.21 lakh crore for capital expenditure, while
also advancing ease of doing business reforms. These
moves have boosted investor confidence and reinforced
Indias long-term growth path.

Monetary policy also turned accommodative as inflation
eased. In a notable shift, the Reserve Bank of India (RBI) cut
the repo rate by 25 basis points to 6.25% in February 2025,
marking its first rate cut in five years. This was followed by a
further reduction to 6.00% in April 2025, aimed at stimulating
economic activity amid external uncertainties.

The services sector continues to anchor Indias economy,
contributing around 55% to the Gross Value Added (GVA)
at current prices in FY 2025, up from 50.6% in FY 2014.
Barring the pandemic-hit FY 2021, services GVA growth
has consistently exceeded 6% year-on-year (YoY) for the
past decade. The sector also employs nearly 30% of the
workforce, while playing a catalytic role in manufacturing
through the growing trend of servicification, the increasing
integration of services in production, and post-production
processes.

(Source: httDs://www.Dib.gov.in/PressReleasePage.aspx?PRID=
2098048#:~:text=Indias%20services%20sector%20has%20
been.and%20oost%2Doroduction%20value%20addition.)

OUTLOOK

Despite persistent global volatility and uncertainty, from
geopolitical tensions to commodity market fluctuations, the
Indian economy is expected to maintain its resilience and
measured optimism through the remainder of FY 2025 and
beyond.

I ndias macroeconomic fundamentals, including strong
domestic consumption, a stable financial sector,
manageable inflation levels, and healthy foreign exchange
reserves, are likely to continue supporting economic stability.
These factors give policymakers room to deploy calibrated
measures that balance immediate support and long-term
sustainability.

Moving forward, the focus is expected to remain on fostering
non-inflationary growth, driven by improving demand
conditions, a stronger supply response, and continued policy
support. With inflation pressures gradually easing and rural
and urban consumption showing steady signs of revival, the
conditions for a sustained recovery are becoming clearer.

Monetary policy will remain growth-supportive while closely
monitoring inflation. The aim is to ensure that Indias growth
momentum is preserved without compromising on price
stability.

GLOBAL HOSPITALITY AND TOURISM INDUSTRY

Amid ongoing economic uncertainty, the global hospitality
and tourism industry maintains steady expansion,
reinforcing its vital role in economic development, job
creation, and global connectivity. The World Travel &
Tourism Councils (WTTC) 2025 Economic Impact Research
highlights the sectors renewed momentum, powered by
both international and domestic travel demand, and aided
by structural changes in travel preferences and digital
advancements.

In CY 2024, the global travel and tourism sector generated
US$ 9.9 tn in economic activity, marking one of the strongest
performances since the pandemic-hit CY 2020. This figure
is just 4.1% below the sectors all-time high of US$ 10.4 tn
in CY 2019, indicating a near-full recovery. WTTC forecasts
that in CY 2025, the sector will surpass its pre-pandemic
peak, contributing over US$ 10.5 tn to the global economy,
equivalent to approximately 11.4% of global GDP.

(Source: httos://wttc.org/news/global-travel-and-tourism-is-strong-
despite-economic-headwinds#:~:text=According%20to%20
WTTCs%202025%20Economic%20ImDact%20Research.high%20
of%P0$1.9TN%P0in%P0P019%P0by%P0$164RN.&text=Jobs%P0
around%20the%20world%20suDDorted%20by%20the.more%20
than%20the%20population%20of%20the%20U.S.)

This projected growth reflects a sustained recovery, driven
by easing travel restrictions, increased international mobility,
and a shift in consumer preferences towards experience-led
spending. Business travel is also seeing renewed traction,
supported by the revival of global aviation and the growing
demand for high-quality office infrastructure, particularly in
major business hubs.

Tourism remains a major source of global employment.
In CY 2024, the industry supported over 348 mn jobs
worldwide, roughly one in every eleven positions globally.
This represents an increase of nearly 13.6 mn jobs from
2023 and stands just 1.2% shy of the 2019 level.

This expansion is particularly strong in regions that rely
heavily on travel and tourism for economic diversification.
These include Southeast Asia, the Caribbean, and parts of
Africa.

The labor market rebound in tourism is also notable for its
demographic diversity. Many returning workers are younger
and digitally proficient, while a growing number of second-
career professionals join the industry, attracted by flexible
work options and renewed demand across travel services.

Regional Trends

While global averages are encouraging, recovery has not
been uniform. Regional performance continues to hinge
on domestic infrastructure, regulatory environments, and
geopolitical factors.

• North America led in CY 2024 with US$ 2.7 tn,
accounting for 27.3% of the global total. The US was
the single largest contributor, generating US$ 2.2 tn
alone.

• Europe followed with a US$ 2.1 tn contribution,
supported by strong demand in Southern European
nations like Spain, Italy, and Greece.

• Asia-Pacific is regaining momentum after a delayed
reopening. China, India, and Southeast Asia are
expected to see the fastest growth rates through CY
2025. The region contributed US$ 1.6 tn in CY 2024,
with much of this from domestic tourism.

• Africa and Latin America are showing promise
due to rising international arrivals, new air routes,
and increasing tourism investment in sustainable
destinations.

Another key feature of the tourism recovery is the continued
shift towards digital platforms. Travelers now rely on
technology not just to book transport and accommodation,
but to plan entire trips, assess sustainability, and connect
with global communities. Over 80% of bookings in 2024 were
made online, as reported by WTTC and its partners.

Looking ahead, the global hospitality and tourism industry
appears set to maintain momentum, although certain
challenges remain.

(Source: https://wttc.org/news/global-travel-and-tourism-is-strong-
despite-economic-headwinds#:~:text=According%20to%20
WTTCs%202025%20Economic%20Impact%20Research.high%20
of%20$1.9TN%20in%202019%20by%2Q$164RN.&text=Jobs%20
around%20the%20world%20supported%20by%20the.more%20
than%20the%20population%20of%20the%20U.S.)

GLOBAL AIR TRAVEL INDUSTRY

The aviation sector continues to regain pace, playing a
pivotal role in connecting people, markets, and experiences
across borders. Recent projections from the International
Air Transport Association (IATA) indicate that the global
airline industry is expected to generate over US$ 1 tn in total
revenue in CY 2025. This marks a major milestone, as it will
be the first time the industry crosses this threshold. However,
the estimated 4.4% YoY growth marks a slight deceleration
compared to the 6.2% increase projected for CY 2024.

Passenger traffic, which remained robust through CY 2024,
is forecast to grow further in CY 2025, though at a more
measured pace. Crucially, all major regions are expected
to record demand levels that exceed pre-pandemic
benchmarks, underscoring the sustained appetite for travel
globally. This resurgence is likely to support a 4.0% increase
in global passenger revenue, reaching approximately US$
705 bn in CY 2025.

In 2024, airfares dropped by nearly 5%. This rate of decline is
likely to ease in 2025, settling below 3%. As fares stabilize and
operational costs rise more slowly, airlines are positioned to
see slight gains in margins and profitability.

On the cost side, pressures remain uneven. Labor costs are
projected to rise by 8%, driven by wage adjustments and
staffing demands. However, this will be partially offset by an
anticipated 5% reduction in fuel costs, providing airlines with
some breathing space to manage costs more efficiently.
Within this context, IATA expects net profits to grow by 16%
YoY in CY 2025, extending the industrys streak of over US$
30 bn in annual profits to a third consecutive year.

The continued expansion of global air traffic is directly tied
to the performance of the hospitality industry. Higher flight
volumes and passenger traffic boost bookings across hotels,
resorts, and serviced apartments. The expected rise in travel
across all regions hints at a broader distribution of tourism,
benefiting both established and emerging hospitality
destinations.

(Source: httDs://www.bcdtravel.com/resources/bcd-reDort-travel-
market-ql-2025/)

INDIAN HOSPITALITY AND TOURISM INDUSTRY

Indias hospitality and tourism industry continues on a strong
growth path, supported by rising travel demand, increasing
domestic consumption, and sustained investment in
infrastructure and services. Valued at over US$ 24 bn in CY
2024, the hospitality sector is expected to grow to US$ 31
bn by CY 2029.

Hospitality Sector

The Indian hospitality ecosystem encompasses hotels,
restaurants, resorts, travel services, and experiential tourism.
Growth is being propelled by rising disposable incomes,
urbanization, and a shift towards branded experiences.
Rising domestic and inbound tourism further strengthens
momentum. Business travel, weddings, and events have
also significantly contributed to the sectors performance.

The hotel industry posted solid gains in FY 2024, with
Revenue per Available Room (RevPAR) up 14%, led by

stronger occupancy and room rates. In FY 2025, RevPAR is
expected to rise by 8-10%, reaching 5,300-5,400. Average
Room Rates (ARR) are likely to range between 8,000 and
8,200, with occupancy hovering around 67-68%. By FY
2026, RevPAR could grow another 7-8%, with ARR moving
to 8,400-8,600.

As of March 2024, India had approximately 180,000 branded
hotel rooms. Over the next five years, supply is expected to
grow at a compound annual growth rate (CAGR) of around
7.5%, with nearly 80,000 additional rooms likely to come
onstream. This growth is being driven by rising demand
across leisure, business, and MICE (Meetings, Incentives,
Conferences, and Exhibitions) segments. Notably, the pace
of new supply is expected to be materially lower in Tier I
cities due to a higher existing base, with more significant
additions concentrated in emerging business and leisure
destinations.

(Source: https://www.careratinas.com/uploads/newsfiles/77437

58H3

Tourism Sector

The tourism sector is also gaining traction, with revenues
projected to exceed US$ 59 bn by CY 2028. Key drivers
include growth in domestic travel, improvement in foreign
tourist arrivals, and demand from corporate and event-
based tourism. The Union Budget 2025-26 has allocated
2,541.06 cr. for tourism development, focusing on
infrastructure, skill-building, and facilitation. A major initiative
includes developing 50 tourist destinations in collaboration
with states, aimed at improving visitor experience and
connectivity.

(Source: https://timesofindia.indiatimes.com/travel/destinations/
2024-a-booming-year-for-the-hosDitality-and-tourism-industry/
articleshow/115970913.cms)

Sector Outlook

India remains a strong magnet for domestic and global
travelers. Hotels and resorts are seeing improved occupancy,
driven by consistent demand and limited new supply. The
rise in branded room inventory, aided by increased travel
activity and government initiatives, is expected to drive
performance in the near to medium term.

MULTIPLE DEMAND DRIVERS FOR INDIAN HOSPITALITY

The Indian hospitality sector is poised for significant growth
due to several structural tailwinds.

Aviation Growth

Indias aviation sector continues to expand rapidly, driven
by rising passenger volumes and significant infrastructure

investments. The number of operational airports in the
country has more than doubled from 74 in CY 2014 to 157
in CY 2024. The government has set an ambitious target
of reaching 350 airports by CY 2047. This broad-based
expansion in transport infrastructure is opening up access
to vibrant micro-markets beyond metro cities, generating
fresh demand for hospitality services and enabling new
formats of travel, leisure, and business stays.

Corporate Travels

Growing corporate travel is another key catalyst, with India
being the largest market for Global Capability Centers (GCCs).
Cities like Bangalore, Hyderabad, and Pune are experiencing
rapid growth in office space absorption, which structurally
drives hotel demand. As corporate travel continues to grow,
hotels in these locations will see increased occupancy
rates, particularly those offering high-quality amenities
and services tailored to business travelers. Growth in MICE
visitation and ancillary areas like branded residences,
serviced apartments, and member clubs is expected to drive
future growth.

Surge in Domestic Tourism

Domestic travel is witnessing a profound transformation,
led by travelers seeking new and thoughtful experiences.
The industry is expected to grow from 2.5 bn in CY 2024 to
5.2 bn by CY 2030. Millennials and Gen Z, the most rapidly
expanding cohort of travel spenders, are key to this growth.

Rise in Disposable Income

Rising disposable incomes, especially among the younger
demographic, are increasing demand for premium and
luxury hospitality experiences. Millennials are not only
traveling more frequently but are also willing to spend more
on quality stays, curated experiences, and leisure activities.
In response, leading hospitality brands are expanding their
footprints across urban centers, leisure destinations, and
offbeat locations to cater to this evolving consumer base.

Growth in Foreign Tourist Arrivals

Another key driver is the growth in foreign tourist arrivals,
projected to rise at a CAGR of 7.1% from 9.9 mn in CY 2024 to
14.9 mn by CY 2030. This trend is propelled by government
initiatives to upgrade tourism infrastructure and promote
India as a global destination. Consequently, a higher footfall
is driving up hotel occupancy and revenue across popular
travel locations.

Rich Heritage and Pilgrimage

Indias deep-rooted cultural heritage and spiritual appeal continue to draw visitors. The countrys mysticism, along with evolving
preferences for luxury and niche experiences, is driving demand for heritage, wildlife, wellness, and spiritual tourism. Hotels and
resorts offering unique experiences are likely to attract a premium clientele willing to pay for these experiences.

SNAPSHOT OF HOSPITALITY SEGMENTS IN INDIA

The hospitality industry comprises luxury, premium (Upper Upscale and Upscale), Mid-Scale and economy segments, which
provide a wide range of offerings, services, and experiences. Segmental classification is essentially based on the intended
positioning of respective hotel brands. At the top tier, luxury hotels are distinguished by iconic status and exceptional service
standards.

Segment	Luxury (Upper Upscale)	Premium (Upscale)	Mid-Scale and Economy
Segment Description	• Typically includes iconic and marquee hotels, positioned in the topmost tier • Usually offer larger rooms, multiple and differentiated fine dining options, spas, recreational facilities, and large opulent public areas with personalized services	• Mostly well located, full-service hotels • Normally priced lower than luxury and offer relatively smaller public areas and facilities	• Usually offer functional accommodation and limited services, while being focused on price consciousness
Number of Rooms	29,152	67,879	73,221
Percentage of Branded Rooms	17.1%	39.9%	43.0%

(Source: HVS ANAROCK Research - Data for FY 2024)

COMPANY OVERVIEW

SAMHI Hotels Ltd. (also referred to as ‘SAMHI, ‘The
Company or ‘We) is one of Indias leading multi-branded
asset owners by inventory, with a proven track record of
transforming underperforming hotels into thriving assets.
Our primary focus is on high-growth markets like Bangalore,
Hyderabad, Pune, and NCR. These regions benefit from
rising air travel and steady office space absorption, which
continue to fuel demand for premium hospitality. SAMHI is
well-positioned to harness these trends and drive sustained
growth.

OUR BUSINESS MODEL

Our business model is built on acquiring underperforming or
undervalued hotel assets, renovating them, and rebranding
them under globally recognized hospitality brands like
Marriott, Hyatt, and IHG. This capital efficient approach
allows us to minimize capital expenditure while maximizing
returns. By partnering with established global brands, we
draw on their strong market presence, loyalty programs and
operational expertise to enhance the value of our properties.
This strategy has consistently improved occupancy rates,
average room rates (ARR), and overall profitability.

Our portfolio is strategically diversified across Upper
Upscale and Upscale, Upper Mid-Scale, and Mid-Scale

segments, catering to a wide range of customer preferences
and budgets. This multi-segment approach allows us to
capture demand from both premium and value-conscious
travelers, ensuring resilience and reducing reliance on any
single market segment.

• Upper Upscale and Upscale: These include landmark
properties offering spacious rooms, fine dining, spas,
recreation, and tailored services.

• Upper Mid-Scale: These are well-positioned, full-
service hotels with smaller public areas and facilities,
typically priced lower than luxury hotels.

• Mid-Scale: These hotels offer functional

accommodation and limited services, focusing on
price-conscious travelers.

EXPANSION AND PORTFOLIO ENHANCEMENT

In FY 2025, we have made significant strides in expanding
and enhancing our portfolio. We added a total of 142 new
rooms through acquisition of Trinity, Whitefield, Bangalore;
signed a long-term variable lease to add 170 rooms in
HITEC City, Hyderabad; and sold Four Points by Sheraton,
Chennai OMR with 116 rooms. These efforts have boosted
our portfolio and positioned us to seize greater revenue
opportunities.

Notably, we are preparing to introduce three globally recognized brands into our portfolio: W Hotels, Westin Hotels & Resorts,
and Tribute Portfolio. These additions are expected to further enhance our brand mix, elevate guest experiences, and improve
yield per key over time.

Our focus on upgrading and rebranding properties has also been a key driver of growth. We transitioned several hotels from
Mid-Scale to Upper Upscale and Upscale segments, enhancing their market positioning and revenue potential. This strategic
shift aligns with the growing demand for premium accommodations in Indias high-growth markets.

OPERATIONAL EXCELLENCE

Our focus on operational efficiency has also yielded positive results. Using advanced tools like SAMHIntel and SAMConnect,
we have been able to monitor key metrics in real time, optimize energy use, and improve overall operational performance.
SAMHIntel, our business intelligence platform, consolidates financial and operational data, enabling us to make data-driven
decisions. At the same time, SAMConnect, an IoT-based platform, monitors energy consumption, equipment health, and other
vital parameters to minimize downtime and control costs. Together, these tools cut expenses and improve guest satisfaction,
driving better profitability.

Occupancy* (in %)

Q1	Q2	Q3	Q4
75	77	74	78

Average Room Rate* (in )

Q1	Q2	Q3	Q4
5,711	5,898	6,833	7,670

RevPAR* (in )

Q1	Q2	Q3	Q4
4,276	4,529	5,088	5,958
+13.0% YoY	+16.5% YoY	+15.1% YoY	+20.6% YoY

Our Inventory Growth (in no. of rooms)

March 31, 2023	March 31, 2024	March 31, 2025
3,839	4,801	4,823

FINANCIAL OVERVIEW
Reported Financials

(all figures are in mn)

	FY 2025	FY 2024**	YoY Change %
Total Income	11,497	9,787	17.5
Consolidated EBITDA (Pre-ESOP and One-Time)	4,434	3,484	27.3
Consolidated EBITDA (Reported)	4,257	2,879	47.9
PAT	855	(2,346)	136.4

Key Ratios (on Reported Basis)

	FY 2025	FY 2024	Y-o-Y Change %
Debtors Turnover Ratio (x)	17.67	18.54	(4.7)
Interest Coverage Ratio (x)	2.00	0.50	300.0
Current Ratio (x)	0.59	0.38	55.3
Debt-to-Equity Ratio (x)	1.86	2.00	(7.0)
Return on Net Worth (in %)	7.9	(24.1)	132.8

*Occupancy, ARR and RevPAR have been calculated on same-store basis i.e., for Q1 and Q2 it excludes the ACIC portfolio acquired in August
2023, Holiday Inn Express, Greater Noida (renovated and reopened in December 2024) and for Q3 and Q4 it additionally excludes Trinity, Bangalore
acquired in October 2024 and Caspia, Delhi (under renovation)

"The reported financials include the consolidation of ACIC financials for the period from August 11,2023 to March 31,2024.

Our debtors turnover ratio declined from 18.54 times in
FY 2024 to 17.67 times in FY 2025, due to an increase in
revenue and business. The interest coverage ratio increased
from 0.5 times in FY 2024 to 2 times in FY 2025, signaling
a stronger ability to service interest obligations. Our current
ratio strengthened from 0.38 in FY 2024 to 0.59 in FY 2025,
signaling a relatively better liquidity position with more
current assets to cover short-term liabilities. The debt-equity
ratio also showed improvement, moving from 2.00 in FY 2024
to 1.86 in FY 2025, pointing to tighter debt management.
Meanwhile, our net worth climbed from (24.1%) in FY 2024 to
7.9% in FY 2025, on account of profits earned in FY 2025 as
compared to significant losses incurred in FY 2024.

THREATS

The hospitality industry remains under pressure, grappling
with both long-standing structural issues and a wave of
emerging disruptions. Adapting to this evolving landscape
demands constant agility, investment, and innovation.

Key threats include:

• Fragmented and complex regulatory frameworks
across states slow expansion and raise compliance
costs.

• Licensing, permitting, and safety norms vary widely,
leading to procedural delays.

• A critical shortage of skilled labor hampers service
standards and operational efficiency. This talent
gap stems from weak training infrastructure and
perceptions of poor work-life balance and low wages.

• Rising operational costs and sustained inflation
continue to compress margins.

• Cybersecurity risks increase as guest data becomes
more interconnected and vulnerable.

• Geopolitical unrest in regions like Eastern Europe and
the Middle East disrupts travel flows and dampens
confidence.

• Shifting seasonal patterns and climate-driven events
make demand forecasting less reliable.

• The surge of alternative lodging platforms heightens
competition and forces constant reinvention.

• Frequent changes in tax regimes and property values
complicate financial planning.

• Guest expectations now lean heavily towards
sustainable practices and hyper-personalized service,
requiring ongoing investment in talent and technology.

Navigating these layered challenges calls for agile responses
and sustained investment in technology and workforce
development.

RISK MANAGEMENT

We recognize that proactive risk management is fundamental
to strong corporate governance and plays a crucial role
in using strategic opportunities. To address this, we have
developed a comprehensive risk management framework
designed to identify and mitigate risks related to our
business operations. This structured approach enables us
to assess potential risks and their impact on our objectives,
allowing us to make well-informed decisions.

By embedding risk management into our decision-making processes, we enhance our ability to navigate uncertainties while
capitalizing on opportunities to achieve our goals effectively.

Risks	Impact	Mitigation Strategies
Economic and Industry Risk	Economic downturns or shifts in consumer behavior can reduce occupancy rates and revenue.	• Expanding presence across business and leisure destinations to balance demand cycles • Offering flexible pricing strategies and value-added services • Using data analytics to adapt to evolving travel patterns
Financial Risk	Excessive debt, insufficient cash flow, or financial mismanagement could lead to financial distress.	• Maintaining disciplined capital allocation • Optimising operating costs through tech-enabled efficiencies • Prioritising high-yield asset performance • Managing portfolio mix actively to enhance financial resilience
Health and Safety Risk	Non-compliance with health and safety standards may result in accidents, legal liabilities, and reputational damage.	• Conducting regular audits and real-time checks through centralised systems to ensure operational transparency • Applying global best practices in food, fire, and hygiene to meet evolving standards • Upskilling staff consistently on the latest health protocols to reinforce on-ground execution

Risks	Impact	Mitigation Strategies
Regulatory and Legal Risk	Failing to adhere to labor laws, environmental policies, or data privacy regulations may lead to penalties.	• Strengthening compliance with automated tools that track regulatory changes and flag deviations early • Enhancing data security in line with emerging privacy regulations across operating geographies • Conducting regular internal audits and expert-led reviews of environmental and legal practices
Reputational Risk	Negative publicity, poor customer reviews, or controversies can damage brand reputation and revenue.	• Monitoring digital platforms actively to manage reputation and respond to guest feedback in real time • Addressing guest concerns swiftly through agile feedback systems and cross-functional coordination • Maintaining service excellence by investing in continuous staff training and development • Communicating our sustainability progress more effectively to shape and strengthen brand perception

HUMAN RESOURCES

We believe that our people are the foundation of our success.
Therefore, we are focused on building an inclusive, future-
ready workplace where employees feel valued, empowered,
and motivated to contribute their best. Our human capital
strategy is centered on attracting top-tier talent, especially
hospitality professionals with a passion for service
excellence.

To support continuous learning and professional
advancement, we offer structured training and upskilling
programs tailored to enhance technical competencies
and leadership capabilities. In parallel, we are investing in
digital HR platforms to streamline workflows, enable real-
time access to information, and improve overall employee
experience.

Diversity, equity, and inclusion are woven into the fabric of our
culture. We are committed to fostering a work environment
that ensures equal opportunity, encourages collaboration,
and celebrates differences. Employee well-being is a key
focus area, supported by wellness initiatives, assistance
programs, and open communication channels that promote
mental, emotional, and physical health.

Regular performance reviews, feedback mechanisms,
and coaching frameworks help align individual goals with
organizational objectives, while also driving accountability
and growth. As of March 31,2025, our workforce comprised
3,343 employees. Going forward, we aim to strengthen
employee engagement, nurture internal talent, and foster a
high-performance culture that can power the next phase of
our growth.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

We prioritize robust internal controls to drive efficiency
and safeguard integrity. Our leadership instills a culture of
accountability and ethical conduct across the organization.

We conduct routine risk assessments and implement
industry-specific control measures, including segregation
of duties and physical and IT security measures to protect
assets and data. Continuous monitoring and training ensure
that these controls remain effective, empowering employees
to detect and report irregularities.

Our internal control framework is continuously refined
to address evolving risks and align with best practices.
This proactive approach contributes to superior guest
experiences and operational excellence, reinforcing our
commitment to adaptability and long-term success.

CAUTIONARY STATEMENT

The statement provided in this section outlines the
Companys objectives, projections, expectations, and
estimations, which may be deemed as forward-looking
statements as per applicable securities laws and
regulations. These forward-looking statements are based
on certain assumptions and anticipations of future events.
However, it is important to note that the Company cannot
guarantee the accuracy or realization of these assumptions
and expectations. Actual results may significantly differ
from those expressed in the statement or implied due to
various external factors beyond the Companys control.
The Company assumes no responsibility to publicly amend,
modify, or revise any forward-looking statements based on
subsequent developments. It is essential for stakeholders
to exercise caution and consider the inherent uncertainties
associated with forward-looking statements when making
decisions based on such information.